Barclays buys stake in crypto firm Copper for $2 billion

by Arthur · July 26, 2022

Barclays buys stake in crypto firm Copper for billion

Barclays buys stake in crypto firm Copper for $2 billion

British banking giant Barclays is set to join the investor group for crypto firm Copper

By Shashank Bhardwaj

Image: Shutterstock

Barclays is among the latest investors for digital asset firm Copper. The exact valuation of this stake is currently unclear, with reports suggesting that the British banking firm is investing “millions of dollars” in the crypto custodian. The funding round is expected to close within the next couple of days. Copper, a unicorn valued at $2 billion, was established in 2018 and has former UK Chancellor Philip Hammond as a senior adviser.

The crypto company, which has earned an eminent reputation in the rapidly changing cryptosphere, is regulated in Switzerland after failing to register with the UK’s Financial Conduct Authority. While the company had previously estimated a value of around $3 billion, it has since cut down the targeted numbers given the crypto bear market in 2022.

Barclays is not the first big name company to show interest in Copper as the crypto firm has also managed to secure investors from the global venture capital sector, such as LocalGlobe, MMC Ventures and Dawn Capital. This proves that companies are looking at crypto for the future despite the ongoing discussions surrounding the stability of the market.

Marcus Sotiriou, an analyst at digital asset broker GlobalBlock, said: “This shows that although crypto faces significant obstacles, due to the macro environment and lack of buyers, financial institutions are showing an increase in interest and the long-term value continues to expand. ”

The banking giant has had a turbulent relationship with the blockchain market in the past. In 2015, it became the first UK-based private bank to accept Bitcoin for charitable donations. It also released a social payment application in 2016 that would allow users to convert British pounds into Bitcoin with financial technology firm Circle.

However, the bank had also spoken out against the crypto market when it blocked customers from sending funds to high-profile crypto exchanges such as Binance. Barclays’ decision to buy stakes in Copper shows that the banking firm is positive about the future of the crypto market and the digital asset investment company.

The author is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash